17 Feb 2014 07:00
For immediate release | 17 February 2014 |
DQ Entertainment plc
("DQE" or the "Group")
Indian subsidiary financial results for the third quarter and nine months ended
31 December 2013
DQE Entertainment (International) Limited ("DQE India" or "the Company"), the Bombay Stock Exchange and National Stock Exchange of India listed, production and distribution company, which is 75 per cent owned by DQE, has announced its un-audited financial results for the quarter ended 31 December 2013 prepared under Indian GAAP.
Financial Highlights for the nine months ended 31.12.13:
· Revenue: INR 1,378.52 mn (USD 23.03mn) (2012: INR 1,408.65 mn (USD 23.53mn))
· EBIDTA: INR 819.29 mn (USD 13.69mn) (2012: INR 598.40 mn (USD 10mn))
· Profit before tax: INR 355.80 mn (USD 5.94mn ) (2012: INR 178.63 mn (USD 2.98mn))
· Profit after tax: INR 281.13 mn (USD 4.70mn) (2012: INR 140.11 mn (USD 2.34mn))
o As reported previously, due to the seasonality of our business, revenue in the first and third quarters is generally lower than the second and fourth quarters.
o Although the Company had completed deliveries of some of the projects before 31 December 2013, revenues will be recognised in Q4 due to delay in receipt of approvals from clients/partners on account of the holiday season for Christmas and New Year.
o For the nine months to 31 December 2013, EBIDTA has increased by 37%, profit before tax has increased by 99.7% and [profit after tax has increased by over 100%, compared to the nine months to 31 December 2012. The higher profits are on account of foreign exchange gains and better efficiencies, where the Company has been conscious of its costs and was able to reduce its production and employee expenses substantially.
o The table below indicates the adjusted profit before tax after eliminating the foreign exchange gain/loss and extraordinary items. As per the table below, the adjusted profit before tax has increased substantially for the third quarter as well as the nine months ended 31 December 2013 as compared to the previous corresponding period:
INR (millions) | |||||
Nine months ended | Quarter ended | ||||
31 Dec-13 | 31 Dec-12 | 31 Dec-13 | 31 Dec-12 | ||
Profit before tax | 355.8 | 178.63 | 56.42 | 103.22 | |
Less foreign exchange gain | 326.74 | 60.94 | -0.95 | 81.43 | |
Extraordinary items | - | - | - | - | |
Add provision of doubtful debt | 56.98 | - | - | - | |
Less transferred to capital account | - | 89.84 | - | 38.47 | |
Adjusted PBT | 86.04 | 27.85 | 57.37 | -16.68 | |
o The current order book stands at INR 4100 mn.
o The administrative costs have been impacted on account of a provision of INR 57mn due from one of our customers, which has gone into administration.
o The Company's focussed efforts to reduce its receivables have resulted in the collection of an amount of INR 447 mn since October 2013.
Chairman's Statement:
There is a clear upsurge in the economy of North America, however the economic slowdown in Europe still continues. DQE is now making all efforts in North America to take benefit of the increased demand for TV and movie content in animation - hybrid presentations as well as pure live action. We are in a number of advanced negotiations with production houses in the USA in this regard.
With the eruption of newer delivery formats, such as the VOD (video-on-demand) and SVOD (subscription video-on-demand) platforms, there is an increased demand for animated children's content as can be seen from announcements of deals made by Netflix, Hulu, DreamWorks and several other major studios in the US. DQE, with its track record of international high quality productions such as Little Prince, Iron Man, Fantastic Four, Jungle Book, Peter Pan, The Penguins of Madagascar etc., should benefit from this renewed demand.
The industry is also witnessing an increase in demand for Visual Effects (VFX) content for animated feature films, live Action thrillers & action films and Sci-fi films from Hollywood, Europe and Japan. This will enable DQE to take advantage of its capabilities and trusted name for CGI/VFX production in USA and Europe.
Our intellectual properties are gathering momentum worldwide. We have successfully completed the delivery of 'The Jungle Book Season 2'. Based on the strong demand from the broadcasters and producers worldwide we have "green lit" the production of the second season of 'The New Adventures of Peter Pan'. With a substantial evolvement of distribution technologies and delivery platforms, our licensing and distribution team is continuously exploring avenues for 360 degree monetisation of our content library.
An update on some of our major projects and licensing/distribution activities, and the operating highlights for the quarter ended 31 December 2013, are set out below:
I. Production Update:
(a) Some of the Ongoing projects:
· Peter Pan Season 2 - 26 x 22' CGI TV series with ZDF Germany, De Agostini Italy and Method Animation and France TV
· Jungle Book Christmas Special - 42' - CGI TV Feature with ZDF and Disney Channel
· Robin Hood, Mischief in Sherwood - 39 x 11' - CGI TV series with Method Animation and TF1 France, ZDF Germany, ATV Turkey, DeA Kids Italy
· Lassie & Friends - 13 x 22' 2D HD TV series with Dreamworks Classic Media USA, Super Prod & TF1 France, ZDF Germany
· NFL Rush Zone Season 3 - 24 x 22' - CGI & 2D TV Series with Rollman Entertainment, USA for Nicktoons
· Little Prince Season 3 - 26 x 22' - CGI TV series with Method Animation, WDR Germany, France Television, RAI TV Italy
· Manav - 1 x 60' - 2D TV feature for Disney, India
· Miles from Tomorrow: 22 x 22' - CGI TV series with Wild Canary, USA for Disney Channel USA.
· Lancer Man Home: for Oysterblue Media Corp, USA
· Lanfeust Quest: 8 x 22' - CGI TVseries with Gaumont Animation, France M6 TV France
· Iesodo 2nd Season - 10 x 13' - CGI TV Series with Zaya Toonz LLC, USA
(b) Completed projects in Q3:
· Jungle Book Season 2 - 52 x 11'- CGI TV series with ZDF Germany and TF1 France
· Iesodo 1st Season - 10 x 13' - CGI TV Series with Zaya Toonz LLC, USA
· Lassie & Friends - 13 x 22' a series with Dreamworks, USA Super Prod, France, TF1 France, ZDF, Germany
· Robin Hood, Mischief in Sherwood - 13 x 11' with TF1 France, ZDF Germany, ATV Turkey, DIA Kids, Italy.
· Lanfeust Quest - 18 x 22' CGI Series with Gaumont Animation & M6 TV France
(c) New projects signed/in development in Q3:
· 7 Dwarfs & Me - 52 x 11' CGI & Live Action Hybrid Series with Method Animation, France
· 5 & IT - 52 x 11' - CGI TV Series with ZDF Enterprises - Germany
· NFL Rush Zone Season 4 - 24 x 22' - CGI & 2D TV Series with Rollman Entertainment, USA for Nicktoons
· Leo & The Pisa Gang - 52 x 11' - CGI TV Series with MPP Production and Penta TV, Germany
· The Yonagonies - 52 x 11' CGI project with Rollman Entertainment and Seaworld Entertainment USA.
II. Licensing & Distribution:
(a) New broadcasting agreements in Q3:
S. No | Broadcast Partner | Rights | Territory |
1 | Workpoint | Jungle Book 2 & Jungle Book Safari | Thailand |
2 | SABC | Iron Man 2 | South Africa |
3 | Compact Collections | Jungle Book 2 & Jungle Book TV Special | Worldwide |
4 | De Agostini | Robin Hood | Italy and Italian speaking territories |
5 | ZDF | Robin Hood | Germany and German speaking territories |
(b) New merchandising agreements in Q3:
S No | Name of licensee | Category | Territory |
1 | Spafax Airline Network | In-flight Entertainment | In-flight Entertainment - Alrcalin Only |
2 | Playrific Inc | Jungle Book App. | Worldwide |
3 | Milestone Productions & Events | Costume Rentals; Character Meet & Greets; Non Ticketed Stage Shows less than 45 minutes in duration | North America; UAE; Qatar; Oman; Saudi Arabia |
4 | Harlequinn International Group Pty Ltd | Back to School | Australia |
5 | Jilcroft Pty Ltd (MJM Australia Imports) | Puzzles and Games | Australia |
Un-Audited Consolidated Financial Results for the quarter and period ended 31 December 2013
(Rs in million) | |||||||
Sl.No | Particulars | For Quarter ended 31 December 2013 | For Quarter ended 30 September 2013 | For Quarter ended 31 December 2012 | For nine months ended 31 December 2013 | For nine months ended 31 December 2012 | For Year ended 31 March 2013 |
(Un-audited) | (Un-audited) | (Un-audited) | (Un-audited) | (Un-audited) | (Audited) | ||
1 | Net Income from Operations | 508.51 | 565.76 | 455.93 | 1,378.52 | 1,408.65 | 2,294.08 |
2 | Expenditure | ||||||
a | Production Expenses | 15.50 | 3.59 | 40.10 | 35.58 | 113.28 | 178.61 |
b | Employee Expenses | 186.41 | 197.44 | 214.09 | 586.07 | 672.08 | 875.83 |
c | Other Expenses | 82.60 | 118.29 | 65.07 | 264.32 | 175.67 | 250.24 |
d | Depreciation, Amortisation and Impairment | 100.45 | 98.35 | 102.86 | 289.65 | 285.44 | 526.99 |
e | Foreign exchange (gain) / loss | 0.95 | (143.73) | (81.43) | (326.74) | (60.94) | (17.97) |
f | Expenses transferred to Capital Account | - | - | (38.47) | - | (89.84) | (125.44) |
Total Expenses [2a to 2f)] | 385.91 | 273.94 | 302.22 | 848.88 | 1,095.69 | 1,688.26 | |
3 | Profit from Operations before Other Income, Interest and Finance expense and Exceptional Items [ 1 -2 ] | 122.60 | 291.82 | 153.71 | 529.64 | 312.96 | 605.82 |
4 | Other Income | 5.61 | 3.06 | 2.17 | 11.17 | 14.36 | 16.29 |
5 | Profit before Interest and Finance expense and Exceptional Items [ 3+ 4 ] | 128.21 | 294.88 | 155.88 | 540.81 | 327.32 | 622.11 |
6 | Interest and Finance Expenses | 71.79 | 63.03 | 52.66 | 185.01 | 148.69 | 209.44 |
7 | Profit after Interest and Finance expense but before Exceptional Items. [ 5 - 6 ] | 56.42 | 231.85 | 103.22 | 355.80 | 178.63 | 412.67 |
8 | Exceptional items | - | - | - | - | - | - |
9 | Profit from Ordinary Activities before tax | 56.42 | 231.85 | 103.22 | 355.80 | 178.63 | 412.67 |
10 | Less: Tax expense (net off MAT credit entitlement) | 68.81 | 4.65 | 14.07 | 74.67 | 38.52 | 39.62 |
11 | (Loss) / Profit from Ordinary Activities after tax[ 9 - 10 ] | (12.39) | 227.20 | 89.15 | 281.13 | 140.11 | 373.05 |
12 | Extraordinary Item | - | - | - | - | - | - |
13 | (Loss) / Profit for the period [11-12] | (12.39) | 227.20 | 89.15 | 281.13 | 140.11 | 373.05 |
14 | Paid-up equity share capital [Face value Rs.10 per share] | 792.83 | 792.83 | 792.83 | 792.83 | 792.83 | 792.83 |
15 | Reserves excluding Revaluation Reserves as per balance sheet of previous accounting year | - | - | - | - | - | 3,528.32 |
16 | Earnings Per Share [Face value Rs.10 per share](not annualised/ in `) | ||||||
a) Basic | (0.15) | 2.86 | 1.12 | 3.55 | 1.77 | 4.71 | |
b) Diluted | (0.15) | 2.86 | 1.12 | 3.55 | 1.77 | 4.71 | |
17 | Public Shareholding | ||||||
a) Number of Shares | 19,820,782 | 19,820,782 | 19,820,782 | 19,820,782 | 19,820,782 | 19,820,782 | |
b) Percentage of shareholding | 25% | 25% | 25% | 25% | 25% | 25% | |
c) Shares held by custodians against depository receipts | - | - | - | - | - | - | |
18 | Promoters and Promoter group Shareholding | ||||||
a) Pledged / Encumbered - No. of Shares | - | - | - | - | - | - | |
Percentage of shares (as a % of the total share holding of promoter and promoter group) | - | - | - | - | - | - | |
Percentage of shareholding (as a % of the total share capital of the company) | - | - | - | - | - | - | |
b) Non encumbered - No. of Shares | 59,462,218 | 59,462,218 | 59,462,218 | 59,462,218 | 59,462,218 | 59,462,218 | |
Percentage of shares (as a % of the total share holding of promoter and promoter group) | 100% | 100% | 100% | 100% | 100% | 100% | |
Percentage of shares (as a % of the total share capital of the company) | 75% | 75% | 75% | 75% | 75% | 75% | |
c) Shares held by custodians against depository receipts | - | - | - | - | - | - | |
Consolidated Segment Revenue and Results
(Rs in million) | ||||||
Particulars | For Quarter ended 31 December 2013 | For Quarter ended 30 September 2013 | For Quarter ended 31 December 2012 | For nine months ended 31 December 2013 | For nine months ended 31 December 2012 | For Year ended 31 March 2013 |
(Un-audited) | (Un-audited) | (Un-audited) | (Un-audited) | (Un-audited) | (Audited) | |
Segment Revenue | ||||||
Animation | 378.83 | 415.71 | 335.50 | 1,070.27 | 1,037.27 | 1,820.10 |
Distribution | 129.68 | 150.05 | 120.43 | 308.25 | 371.38 | 473.98 |
Net Income from Operations | 508.51 | 565.76 | 455.93 | 1,378.52 | 1,408.65 | 2,294.08 |
Segment Results | ||||||
Animation | 205.60 | 273.18 | 142.51 | 593.39 | 420.85 | 986.91 |
Distribution | 64.89 | 94.41 | 75.04 | 140.71 | 214.82 | 120.00 |
Unallocated income / (expense) | (142.28) | (72.71) | (61.67) | (193.29) | (308.35) | (484.80) |
Segment Results before Interest and Finance Expense and Tax Expenses | 128.21 | 294.88 | 155.88 | 540.81 | 327.32 | 622.11 |
Interest and Finance Expense | (71.79) | (63.03) | (52.66) | (185.01) | (148.69) | (209.44) |
Profit before tax | 56.42 | 231.85 | 103.22 | 355.80 | 178.63 | 412.67 |
Tax expense | 68.81 | 4.65 | 14.07 | 74.67 | 38.52 | 39.62 |
(Loss) / Profit for the period | (12.39) | 227.20 | 89.15 | 281.13 | 140.11 | 373.05 |
Capital Employed | ||||||
Animation | 1,958.95 | 1,992.46 | 1,325.93 | 1,958.95 | 1,325.93 | 1,640.45 |
Distribution | 7,011.43 | 7,434.64 | 4,259.02 | 7,011.43 | 4,259.02 | 5,473.99 |
Unallocated | (3,986.90) | (4,408.64) | (1,429.67) | (3,986.90) | (1,429.67) | (2,793.29) |
Total | 4,983.48 | 5,018.46 | 4,155.28 | 4,983.48 | 4,155.28 | 4,321.15 |
1) The un-audited consolidated financial results for the quarter and period ended December 31, 2013 have been taken on record by the Board of Directors at its meeting held on 14 February 2014. The "Un-audited Consolidated Financial Results" have been subjected to the limited review by statutory auditors of the company.
2) Pursuant to Clause 41 of the Listing Agreement, the Company opted to publish only the Consolidated Results of the Company. Investor can view the Standalone results of the Company on the Company's website "www.dqentertainment.com" as well as the website of BSE (www.bseindia.com) and NSE (www.nseindia.com).
3) Certain Standalone Information of the Company.
(Rs in million) | ||||||
Particulars | For Quarter ended 31 December 2013 | For Quarter ended 30 September 2013 | For Quarter ended 31 December 2012 | For nine months ended 31 December 2013 | For nine months ended 31 December 2012 | For Year ended 31 March 2013 |
(Un-audited) | (Un-audited) | (Un-audited) | (Un-audited) | (Un-audited) | (Audited) | |
Net Income from Operations | 308.05 | 553.93 | 449.50 | 1,134.78 | 1,106.79 | 1,988.07 |
(Loss) / Profit before tax | (73.98) | 253.85 | 124.64 | 259.82 | (3.91) | 290.10 |
(Loss) / Profit after tax | (142.79) | 249.20 | 108.65 | 185.15 | (18.68) | 270.59 |
4) Corresponding year end figures have been regrouped / reclassified wherever necessary.
Nature of complaints | Opening Balance | Received during the quarter | Disposed during the quarter | Closing Balance |
Investor complaints | - | - | - | - |
5) Corresponding year end figures have been regrouped / reclassified wherever necessary.